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Managing Franchisee Relationships Print

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The ongoing arrangement.

WHAT THE RELATIONSHIP ACTUALLY IS

Interdependent: their success is your revenue, and your system is their livelihood.

WHY IT BECOMES DIFFICULT

Franchisees feel they pay for support they do not receive Franchisors feel franchisees do not follow the system Both are frequently true

WHAT TO PROVIDE

The support specified, reliably.

WHY RELIABLY

Unprovided support is the commonest source of dispute and of refused fees.

WHAT SUPPORT SHOULD INCLUDE

Regular contact Visits and operational review Help with problems Training updates Marketing and materials Sharing what works across the network

WHY SHARING WHAT WORKS

It is among the most valued things a franchisor provides and it costs little.

WHAT TO ESTABLISH

Regular communication with the whole network.

WHAT TO CREATE

A way for franchisees to raise issues and be heard.

WHY

Unheard grievances organise.

WHAT TO LISTEN TO

Franchisees who are performing well.

WHY

They understand the model and their suggestions are usually sound.

WHAT TO AVOID

Changing the system without consultation Imposing costs without explanation Favouring some franchisees over others Being unreachable

WHAT TO MONITOR

Performance across the network.

WHAT TO DO ABOUT STRUGGLING FRANCHISEES

Establish why, and help.

WHY

Failure damages the brand and it is frequently preventable.

WHAT TO RECORD

Support provided, and issues raised.


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